CLEVELAND – Just as it closed the last new deal of its third fund, Brantley Venture Partners was gearing up for a second close on Fund IV.
Brantley Venture Partners IV, a $125 million-targeted vehicle, will have a $90 million second close in February, said the firm’s Managing General Partner Robert Pinkas. The fund held a $75 million first close in November and plans to hold a series of rolling closes before it concludes fund raising March 31, Mr. Pinkas said.
Fund IV likely will close its first two deals in February, Mr. Pinkas added. The firm focuses on growth-stage health-care and business services companies with aggressive acquisition strategies, such as Pediatric Physician Alliance Inc., the final addition to Fund III’s portfolio.
Brantley Venture Partners III, a $57 million vehicle raised in 1996, in December invested slightly more than $3 million in Pediatric Physician, a practice management business. The company plans to use the money to pursue acquisitions of physician practices, including Child Health Care Group.
Brantley III’s investment was part of a nearly $8 million round that also included Brantley Capital Corp., a publicly traded venture fund affiliated with Brantley Ventures. Brantley Capital went public in November 1996 (VCJ, January 1996, page 7).
About 97% of the firm’s limited partners are institutional investors, including Crossroads Group and Bank of America, as well as public and private pensions, Mr. Pinkas added.
Crossroads has been an investor in Brantley II through IV. Aside from Brantley’s competitive returns, Crossroads appreciates the vehicles’ focus on the Midwest, which the L.P. considers an underserved market, and its manageable size, said Managing Director Carol Proffer.
In addition to Mr. Pinkas, Brantley Venture Partners consists of General Partners Mike Finn, Paul Cascio and Jim Bergmen. The firm likely will add its second associate after fund raising is completed, Mr. Pinkas said.